OneSource Specialty Pharma Limited has secured in-principle approval from the Government of Karnataka for the expansion of its Unit II facility, under the Karnataka Industrial Policy (KIP) 2025–30. The approval pertains to incentives and concessions associated with the company's proposed investment in expanding its manufacturing infrastructure, marking a notable development in its growth trajectory.

Approval Details

The key details of the government approval are outlined below:

Facility and Expansion Scope

The expansion pertains to Unit II, the company's flagship facility, situated at Obadenahalli, 2nd Phase, KIADB Industrial Area, Doddaballapur Taluk, Bengaluru Rural District. The proposed expansion is aimed at enhancing manufacturing capacities to better service the company's global partners. Unit II holds strategic importance within the company's operational framework, and this expansion is described as a significant step in the company's broader growth strategy.

Regulatory Disclosure

The development was disclosed by OneSource Specialty Pharma under Regulation 30, as communicated to BSE Limited and the National Stock Exchange of India Limited on May 16, 2026. The disclosure was signed by Trisha A, Company Secretary and Compliance Officer, Membership Number A47635.

OneSource Specialty Pharma Limited's Board of Directors has resolved not to pursue the proposed composite scheme of arrangement and amalgamation in its current form, as communicated to the stock exchanges on May 13, 2026. The board deliberated the proposed transaction at its meeting held on the same date and concluded that it would not be in the best interest of all stakeholders to proceed at this stage. The company has indicated that it intends to revisit the transaction following the successful delivery of respective companies' FY28 guidance.

Background of the Proposed Scheme

The proposed transaction was a composite scheme of arrangement and amalgamation (merger by absorption) involving multiple entities. The scheme was structured under Section 230 to 232 read with Section 234, Section 52, and Section 66 of the Indian Companies Act, as well as Section 210 read with Section 212 of The Singapore Companies Act, 1967, and other applicable provisions of both statutes.

The key parties involved in the proposed scheme are outlined below:

Earlier In-Principle Approval

The development follows an earlier intimation dated February 26, 2026, wherein the company had disclosed receipt of in-principle approval for the proposed scheme of arrangement. The scheme related to the acquisition of the facilities of SteriScience — specifically those located in Poland and Baroda — into OneSource Specialty Pharma.

Board's Decision and Rationale

At the board meeting held on May 13, 2026, the Board of Directors deliberated on the proposed transaction and decided, in the best interest of all stakeholders, not to pursue the transaction in its current form. The board has stated its intention to revisit the scheme following the successful delivery of respective companies' FY28 guidance. The communication to the exchanges was signed by Trisha A, Compliance Officer and Company Secretary (Membership Number: A47635), on behalf of OneSource Specialty Pharma Limited.